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2. PCNTDAs experience on… Developing a 53 hectare township to; –Cater to all sections of the society –Provide social and physical infrastructure services Utilizing support from JNNURM for constructing 5040 BSUP housing units and making PCNTDA area slum free Providing PCNTDA with 2275 units of affordable housing stock for EWS and middle income sections of the society –In addition to schools, hospitals and public amenities Protecting PCNTDA from conventional construction contract risks All packaged in one contract through a unique PPP structure

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3. PCNTDA is a Development Authority Established in 1972 by Government of Maharashtra Mandated to develop 43 sq kms of peri-urban areas towards the north of Pune Metropolitian area Till date it has actively acquired and developed about 11 sq kms in a planned manner Has developed infrastructure integrated seamlessly with neighbouring Pimpri Chinchwad Municipal Corporation

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5. Project Highlights Area: 53 hectares Located in a prime area, adjacent to auto and auto ancillary establishments Well developed by internal roads and with a proper laid water network Allowable FSI is 1 as per Development Control Regulations

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6. Genesis for conceptualizing this project In normal course, PCNTDA would have constructed BSUP units through conventional construction contracts; exposing itself to –Cost overruns – escalations and variations –Delayed decision making – time overruns –Other issues like QA and QC for limited capacities within its system JNNURM and Govt of Maharashtras support enabled this PPP project –MoUHPA funds for 5040 tenements –Increase in plot FSI from 1 to 2.5 to exploit real estate potential from Govt of Maharashtra In addition, PCNTDA addressed its mandate of construction of affordable housing stock aimed to stabilize the real estate market prices

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7. Project Objective and why private sector Plot had good real estate potential to attract interest from private sector PCNTDA wanted private sector to – –To bring in project construction and management efficiencies – –Implement the project on a fast track basis – –Generate funds for PCNTDAs contribution for BSUP through exploitation of real estate – –Provide social and physical infrastructure towards integrated development All packaged in one contract to reduce the risk of exposure to multiple contracts and fine tuning of cash flows between them

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11. Developers Key Obligations Upfront payment of Rs. 50 crores Submission of Performance Security of Rs. 100 crores Master Planning and obtaining its approval from PCNTDA Development and handover of affordable housing units and infrastructure as per the contract timelines Construction as per Master Plan and Specifications specified in development agreement Undertaking eco-friendly initiatives part of the agreement –Rain water harvesting, use of solar power, environment-friendly materials and vermi- composting

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17. The Project Outcome Type of housing unit createdNo. of units BSUP housing5040 Affordable housing [Carpet area 53 sqmtr]1917 Affordable housing [Carpet area 73 sqmtr]358 Total7369 Other Infrastructure 1 School and Hospital for BSUP 1 School and Hospital for general public Physical infrastructure Development of public amenities and reservations

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18. Other benefits Covered cost escalation risk of about Rs. 65 crores Variations and other engineering risks Developed physical and social infrastructure of about Rs. 120 Crs Getting land parcels slum free and making it available for future exploitation

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19. Key takeaways JNNURM funding was utilized not just for constructing BSUP units but leveraged for developing an integrated township –With schools hospitals and all sections of the society living together PPP helped bridge the funding requirements PPP was enabled by increasing plot FSI from 1 to 2.5 for the Project PCNTDA will handover affordable housing stock for other EWS and middle income groups All risks of cost-overrun, delays, variations and price escalations were transferred to the Developer through an efficient contract

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20. Stakeholders Experiences Mr. Dilip Band, Divisional Commissioner, Pune Division says: …. This project has elicited valuable private participation and will be instrumental in providing affordable housing to the poor. We appreciate the efficient and transparent manner in which CRISIL has executed this process, right from project conceptualization to selection of the private developer. Mr. Rajendra Chourse, Senior Vice- President (Projects), D B Group says: …. Being one of the bidders, we can say that the PCNTDA tender was well-researched, planned and structured. The process of PCNTDA tendering from offer to finalization was well- coordinated, efficiently executed and above all transparent. Ms. Anita Arjundas, Managing Director & CEO, Mahindra Lifespaces says: … The project concept was interesting. While PCNTDAs specifications aimed to ensure that high quality houses are built, higher FSI entitlement aimed to reduce costs, enabling developers to offer quality affordable housing options to people. The low amount of upfront payment also helped in view of the current real estate market. CRISIL managed the bid process efficiently. They were highly responsive to our queries which helped us in putting our bid together in record time.